Chapter 12 Chapter review Flashcards
What is a fiscal year and give examples of two different fiscal years.
A budget year is called a fiscal year
operating - 12-month period and is for such things as salaries, fringe benefits, uniforms, crime scene supplies, ammunition, training, and telephone service.
capital-large-scale expenditures that may be “one-time” in nature and take place over several years, such as acquiring land and building a new police station.
Define the steps in the budget cycle and briefly describe them.
(1) preparation and submission of the budget by all of a city or county’s departments, which includes getting input from stakeholders, such as citizens and advisory boards;
(2) review and approval by the legislative body, which may involve controversies;
(3) execution, doing the things for which public funds have been appropriated; and
(4) the audit and evaluation. 20 Many of these activities are going on simultaneously because the current fiscal year and the next budget cycle overlap or are “scrambled” together.
Describe financial and performance audits. Why are performance audits more varied in their approach?
annual audits were of a department’s budget, expenditures, and financial management practices
how good of a job an agency was doing
Identify the focus of a line item budget and a program budget.
The line item is the basic system on which all other budget formats ultimately rest because of its excellence as a control device.
from work by the (New York) Bureau of Municipal Research, which called for a new budget format (1907)—the program budget. Although the term program budget was not initially used, its elements were clearly defined: “For each department, the budget shall be separated to show the kinds of services to be provided.”
What is a performance budget and why have performance budgets substantially abandoned cost measures?
The 1912 Taft Commission on Economy and Efficiency called for a budget with cost data for the type of work being done. The weight of these two recommendations led to the adoption of what is now called a performance budget in New York City (1913). This format was so complicated and unwieldy that New York City soon dropped it.
What are hybrid budgets and why do they exist?
The reason for this is that each jurisdiction, and by extension its police department, uses a system that makes sense to it. History, unique city charter provisions, state laws and local ordinance, past practices, the preferences of key people in the budgeting process, and other variables contribute to the reality that many budgeting systems incorporate features from one or more formats. The test of a budget format is how it’s constructed, not what it’s labeled. Many budgets are hybrid budgets, incorporating features of several different types of budget formats.
Identify three major ways in which a police budget can be supplemented.
asset forfeiture, grants, and police foundations and donation programs.
Give three definitions of budget.
it is a plan expressed in dollars, it is the use of financial resources to meet human needs, and it is a contract between those who appropriate the money and those who execute the budget.
which is true of a budget
finance meet human needs
planned expressed in dollars
contract to who appropriate to execute
a budget period that runs from july 1 2019 to june 30 2020 is often referred as
fiscal year 2020
operating budget usually covers a 12 month period and is typically used for which of the following
salaries
crime scene supplies
training
the ____ provides guidelines covering what types of expenditures should be in the operating budget versus the capital budget
city or county finance department
the budget cycle
consists of 4 sequential steps that repeat every year 1-preparation 2-review & review 3-execution 4-audit
preparation, review and approval execution and _____ are collectively referred to as the budget cycle
audit
in budges allotments are usually made on which kind of basis
quartelry
financial auditor systematically collect and examine records to determine which of the following
unauthorized transfers of funds between accounts
inaccurate computations
expenditures in excess of appropriations
if there is a concern about the budget between the auditor and the chief the chief of police may write
a letter of exception
the oldest simplest most widely used budget format used from 1915 to WWII is
line item
police administrators believe that to have excellence in budget control they should have which type of budget format
line item budge
the disadvantage of a line item budget include what
no program structure
not allow for long range planning
no specific measurable goals
a program budget includes
program structure
attachment of goals to each program
line item budget for control
what wast he budget format in 1960’s and early 70’s practiced by fed. gov.
PPBS
PPBS has which dominant features within its budget format
planning
a performance based budget
expensive
may measure what is easy rather than what is important
may be time consuming
the heart of ZB budget
decision package
the budget format that incorporates features of several different types of budgeting
hybrid
which of the following is a method for supplementing a departments budget
obtaining grants
asset forfeiture
donation programs
capital budgets are intended for
involves acquisition of land or new police building
what is the single most important element in a police budget
people, support costs, salaries, insurance, overtime, training
3 key aspects of budget execution
objectives, adjustments, control
what phase is budget execution
action phase
the pure form of PBB is a ____ _____ ____ designed to relate the amount of various types of work done to the amount of money spent to produce work
results oriented tool
what does the program budget focus on
achieving broad police goals but is labor intensive to develop
what is zero based budget (ZBB)
every gov. program must justify existence
